Feedback:Capital expenditures cannot be negative. PPE is not a percent of assets. It is caused and...

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Feedback:Capital expenditures cannot be negative. PPE is not a percent of assets. It is caused and supports revenue, therefore, it should be linked to a percentage of sales. Why are inventories, Other current assets, and Prepaid expenses so different in the forecast compared to history? Why did Accounts payable suddenly decline? And Income tax payable suddenly appear? Fix these.

I also need the pro forma corrected to use the AMC income statement and balance sheet. (There is a tab that has the statements and the current proforma. Some lines are missing and do not match the statement.)

I need the DCF tab corrected due to changes that need to made to proforma. (wk5 videos, formulas are correct with what each one needs to use but depending on pro forma and how it is adjusted it may need to be adjusted to be correct)

Change any assumptions on the assumption tab as needed to fix numbers.

I need the APV tab explained in a word document

** DO NOT change formating

I do have some other information if needed ask before it is too late

tvp-4tlshncs.xlsx videos-1vd3zxw0.docx

Pallavi · Accepted Answer

Justifications
PPE’s have been changed as % of Sales
Inventories should be calculated as % of COGS not sales. Accordingly inventory has been changed and is now calculated as % of COGS. Now, inventory does not different significantly from the historical figure. Only the inventory for the year the later years differs from history because over the years the Sales has grown owing to which the COGS has also increased, and since inventory was calculated as % of COGS, naturally the Inventory value would also go high. 
Prepaid Expenses have been calculated as % of sales and as the sales are increasing, the prepaid expenses are also increasing. 
Accounts payable have not declined. The figures below indicate a proper pattern and there is no sudden decline.

Feedback:Capital expenditures cannot be negative. PPE is not a percent of assets. It is caused and supports revenue, therefore, it should be linked to a percentage of sales. Why are inventories, Other...

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